Bitcoin continues to maintain its downward movements throughout the day.
Especially if the US stock markets, which will be opened at 16.30 Turkish time, start the day negatively again, it is estimated that another wave of decline may be seen. If the opposite happens, the price may likely rise above $40,000 again.
For this reason, the process at and after this hour should be followed closely throughout the day.
What Does On-Chain Data Say?
When we look at the on-chain data in Bitcoin, it is seen that there is a serious increase in the number of Bitcoin wallets that are in loss.
According to Glassnode data, this data is an indicator made to determine the sum of wallets in profit or loss.
Looking at the chart, ignoring the big crash in March 2020, it is generally seen that a bullish period has started when the loss rate reaches the red area shown in the chart.
From here; Considering that there are institutional investors among the wallets that are at a loss, it can be stated that buying movements begin after a certain level as the profitability ratios have decreased.
As it can be seen, this metric is not a data that should be evaluated instantly. In the medium and long term, When these levels are taken into account, it can be concluded that the rate of profitability has decreased and the price will rise from this, as large investors are now at a loss.
It is known that the decline is experienced not only in crypto money markets, but also in all financial markets, and Bitcoin is also in the category of the most risky investment product. Although BTC is positively differentiated from other markets during bull periods and has more rises, it is one of the assets that lost the most value, as it is a risky product during falling times.
For this reason, developments in the world economy should be followed and transactions should be made by taking into account that there may be lower bottoms.